Recovery Hub Celebrates Three Years In Business
In spite of High Street banks saying 'no' to its loan application, social enterprise Recovery Hub Ipswich has been going from strength to strength …
Four years ago, Foundation East received a loan application from Simon Aalders. Simon wanted to set up Recovery Hub Ipswich, a Community Interest Company (CIC), to offer affordable, effective and local addiction treatment on a not-for-profit basis.
Accessing funding …
Simon had a viable business plan and significant support from both the East of England Cooperative Society and Cambridge Social Ventures. He just needed the funds to get going.
Banks bumble funding …
Simon applied to the high street banks. They couldn’t help because, as a social enterprise and a start-up business, Recovery Hub Ipswich had no trading history, no security and insufficient personal investment to offer.
Grant making bodies stumble funding …
Simon applied to statutory funding and grant making organisations. They loved his plan. They wanted to help. But they couldn’t until his business was established. Simon was stuck. That was until he came across Foundation East.
Foundation East delivers funding …
We looked at the plan and agreed it was viable. We recognised determination and entrepreneurial spirit in Simon and his team. We agreed to provide Recovery Hub Ipswich with the finance it needed to get started. History has proven our decision wise. Indeed, Recovery Hub Ipswich recently celebrated its third birthday and the positive impacts it has made so far.
- Treating over 400 individuals with the disease of addiction
- Expanding from a six-bedroom treatment centre to a 17-bedroom treatment centre
- Creating 12 full-time jobs, 20 part-time medic/therapeutic contract jobs, three consultancy roles and five volunteering roles
- Achieving a remarkable success rate of 90 percent of clients completing the programme, with individual satisfaction levels averaging 9 out of 10
- Adjusting its core programme to address new types of addiction, as increasing numbers of clients come to it with issues around gambling, internet, sex, pornography, gaming and ‘legal highs’
- Running three free new mutual aid meetings for the benefit of the local community (Alcoholics Anonymous, Narcotics Anonymous and Cocaine Anonymous)
So, why were we able to lend to and support Recovery Hub Ipswich when mainstream institutions couldn’t?
Well, we are a Responsible Finance Provider whose mission is to help create and safeguard jobs across the East of England by providing business loans and business support to small businesses, microbusinesses and social enterprises across the region.
Because we are driven by our mission and not by profit we do not have to follow the criteria mainstream finance are bound by and can look past tick boxes to see and support the true potential of people and their ideas.
In Simon and Recovery Hub Ipswich we saw a viable business plan, evidence of previous strategic success and an entrepreneurial mindset. It was clear that this Community Interest Company would deliver a whole range of social benefits to our local community too, whilst providing a model that had the potential to be rolled out further.
“We approached a lot of funders to raise the finance needed to make the Recovery Hub idea a reality and were successful with a few small grants, but despite understanding and appreciating the social and health impact our scheme would create, the statutory and large grant making bodies weren’t able to provide the seed money we needed. Thankfully, Foundation East was prepared to support the venture without the need for us to provide security and their ongoing support and guidance has helped us shape our business. We are grateful.” Simon advises.
But, how do we raise the capital to lend to SMEs, microenterprises and social enterprises like Recovery Hub?
Of course, the only reason we were able to provide Simon with the loan, was because we had the capital to lend. And this is because socially-minded individuals and organizations invest in our Community Investment Tax Relief (CITR) shares.
Take a look at this 30 second animation to find out more...
If you would like to do good with your money to help more local entrepreneurs, like Simon, you can find out more information on investing in our CITR on our investment page
If you are an entrepreneur based in the East of England who is interested in applying for a loan, more information can be found on our loans page.
If you – or someone you know – are struggling with addiction issues, you can contact Simon’s dedicated team on 0300 030 3333 or find out more on the Recovery Hub Ipswich website.